Apple (AAPL) will report quarterly earning on Wednesday, but most closely scrutinized will be the final two days of the quarter.
The highly anticipated iphone went on sale for the final 48 hours of of the second quarter. While iphone sales will contribute virtually no revenue or profits for the quarter (revenue recognized over 2 year mobile contract), everyone will be using the numbers to extrapolate the value of Apple unto infinity.
It should be remembered that their company-life altering device the ipod sold only 125,000 units from release on October 23, 2001 to December 31, 2001.
Wall Street expects Apple to have sold 700,000 iphones in only 48 hours.
When the ipod was launched, Apple was a stock valued at little more than the cash on its balance sheet. No one was expecting anything. Now Apple is in the unenviable position of having to live up to increasingly wildly optimistic expectations. Never an easy thing to do.
Watch for the 2 day quarter on July 25.
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